While there has been a massive uptake in the use of Mortgage Protection Insurance, those people who view it as 'simplified' income protection should probably run it up against this benchmark:
- No occupation classes - apart from just five occupations all clients are insured against being unable to do their own job.
- The cost is based on the hours worked, and in just two bands: 16 - 29 hours and 30 hours plus.
- Wait period: 4 weeks
- Benefit period: 12 months
- Cover to age 70
- Premiums guaranteed for the first five years
- No offsets
There are almost no choices to make except - buy it, or not.
It is not an intermediated product, and is clearly aimed at the part of the market not buying complex, fully featured, and flexible income protection products. The best bit has to be the name "Sick Pay Insurance" which sounds terrible, but has the advantage of describing to the average person exactly what it does in three words. Not offered in New Zealand - it is a UK product from LV= you can find out more at this link. It deserves to do well; I think it could open up the market for income insurance and serve as a great transition for people from non-insurers to getting a fully featured product from an adviser in the future.